A failure by politicians in Washington to reach a deal to raise the U.S. debt ceiling in the next few days -- particularly if  Standard & Poor's makes good on its threat to lower the country's AAA sovereign debt rating -- could have “deep and wide reverberations” in credit and equities markets, according to Todd Rosenbluth, an analyst at S&P Equity Research.

But it might not automatically hurt investors in mutual funds that are invested heavily in U.S. Treasuries and related government bonds.

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access